United States Foreign Military Financing

The United States Foreign Military Financing (FMF) program provides grants and loans to friendly foreign governments to fund the purchase of American weapons, defense equipment, services and training. The program was established through the 1976 Arms Export Control Act and is overseen by the Office of Security Assistance within the Bureau of Political-Military Affairs (previously the Office of Policy Plans and Analysis) of the United States Department of State and executed by the Defense Security Cooperation Agency (DSCA) of the United States Department of Defense.{{Cite web |title=Foreign Military Financing (FMF) |url=https://2001-2009.state.gov/t/pm/65531.htm |access-date=15 May 2024 |website=U.S. Department of State}}{{Cite web |title=Security Assistance Team |url=https://2001-2009.state.gov/t/pm/ppa/sat/index.htm |access-date=15 May 2024 |website=U.S. Department of State|date=January 24, 2007 }}{{Cite web |title=Foreign Military Financing (FMF) |url=https://www.dsca.mil/foreign-military-financing-fmf |access-date=15 May 2024 |website=Defense Security Cooperation Agency}} The program's stated aims are to promote U.S. interests by "ensuring coalition partners and friendly partner governments are equipped and trained to pursue common security objectives by contributing to regional and global stability, strengthening military support for democratically-elected governments, fighting the War on Terror, and containing other transnational threats including trafficking in narcotics, weapons and persons."{{Cite web |title=About Us - Office of Security Assistance |url=https://www.state.gov/about-us-office-of-security-assistance-2/ |access-date=15 May 2024 |website=U.S. Department of State}}{{Cite web |last=Axelrod |first=Matthew Craig |date=April 2011 |title=Aid as Leverage? Understanding the U.S.-Egypt Military Relationship |url=https://lauder.wharton.upenn.edu/wp-content/uploads/2015/06/Axelrod.pdf |access-date=15 May 2024 |website=The Lauder Institute, University of Pennsylvania}}{{Cite web |last1=Tarnoff |first1=Curt |last2=Lawson |first2=Marian L. |date=29 January 2016 |title=Foreign Aid: An Introduction to U.S. Programs and Policy |url=https://nationalaglawcenter.org/wp-content/uploads/assets/crs/R40213.pdf |access-date=15 May 2024 |website=Congressional Research Service}}

FMF funds eligible governments to purchase U.S. defense articles, services and training through the government-to-government the Foreign Military Sales (FMS) program and purchases made through the Direct Commercial Contracts (DCC) program, which oversees sales between foreign governments and private U.S. companies.{{Cite web |author-link=Defense Security Cooperation Agency |date=March 2017 |title=Guidelines for Foreign Military Financing of Direct Commercial Contracts |url=https://www.dsca.mil/sites/default/files/dsca_guidelines_for_foreign_military_financing_of_direct_commercial_contracts_updatedfinal.pdf |access-date=17 May 2024 |website=Defense Security Cooperation Agency}} FMF does not provide cash grants to other countries; it generally pays for sales of specific goods or services through FMS or DCS.{{Cite web |author-link=Defense Security Cooperation Agency |date=March 2017 |title=Guidelines for Foreign Military Financing of Direct Commercial Contracts |url=https://www.dsca.mil/sites/default/files/dsca_guidelines_for_foreign_military_financing_of_direct_commercial_contracts_updatedfinal.pdf |access-date=15 May 2024 |website=Defense Security Cooperation Agency}}{{Cite web |title=Congressional Budget Justification - Department of State, Foreign Operations, and Related Programs |url=https://www.usaid.gov/sites/default/files/2023-03/FY%202024%20CBJ%20FINAL_3.9.23_0.pdf |archive-url=https://web.archive.org/web/20230331133408/https://www.usaid.gov/sites/default/files/2023-03/FY%202024%20CBJ%20FINAL_3.9.23_0.pdf |url-status=dead |archive-date=March 31, 2023 |access-date=15 May 2024 |website=United States Agency for International Development}}{{Cite web |last1=Morgenstern |first1=Emily M. |last2=Brown |first2=Nick M. |date=10 January 2022 |title=Foreign Assistance: An Introduction to U.S. Programs and Policy |url=https://crsreports.congress.gov/product/pdf/R/R40213 |access-date=15 May 2024 |website=Congressional Research Service}}{{Cite journal |last1=Omelicheva |first1=Mariya |last2=Carter |first2=Brittnee |last3=Campbell |first3=Luke B. |date=2017 |title=Military Aid and Human Rights: Assessing the Impact of U.S. Security Assistance Programs |url=https://www.jstor.org/stable/45175796 |journal=Political Science Quarterly |volume=132 |issue=1 |pages=119–144 |doi=10.1002/polq.12575 |jstor=45175796 |issn=0032-3195|url-access=subscription }}

In 2020, the DSCA reported sales of $50.8 billion under the Foreign Military Sales (FMS) program (an increase of 51% from five years earlier) and $124.3 billion in sales under the Direct Commercial Contracts (DCC) program.{{Cite web |last=Inside Government Contracts |first=Covington |title=Covington Guide to Foreign Military Sales and Financing |url=https://www.insidegovernmentcontracts.com/wp-content/uploads/sites/49/2022/03/Covington-Guide-to-Foreign-Military-Sales-and-Financing-2022.pdf |access-date=November 11, 2023 |website=Inside Government Contracts}}

Security Assistance Organizations (SAOs) and military personnel in U.S. embassies play a key role in managing FMF within recipient countries. Some FMF pays for SAO salaries and operational costs. The United States Congress appropriates funds for FMF through the annual Foreign Operations Appropriations Act.

Allocation of Foreign Military Financing

=Middle East and North Africa=

Israel is the largest recipient of Title 22 security assistance under the FMF program.{{Cite journal |last=Clarke |first=Duncan L. |date=1997 |title=US Security Assistance to Egypt and Israel: Politically Untouchable? |url=https://www.jstor.org/stable/4329053 |journal=Middle East Journal |volume=51 |issue=2 |pages=200–214 |jstor=4329053 |issn=0026-3141}} In 2016, the governments of United States and Israel signed their third ten-year MoU, covering 2019 to 2028, for the United States government to annually provide $3.3 billion in FMF.{{Cite web |date=14 September 2016 |title=FACT SHEET: Memorandum of Understanding Reached with Israel |url=https://obamawhitehouse.archives.gov/the-press-office/2016/09/14/fact-sheet-memorandum-understanding-reached-israel |access-date=2024-05-15 |website=whitehouse.gov |language=en}}{{Cite journal |last=Sharp |first=Jeremy M. |date=12 September 2024 |title=Egypt: Background and U.S. Relations |url=https://crsreports.congress.gov/product/pdf/RL/RL33003 |journal=Congressional Research Service}}{{Cite web |last1=Masters |first1=Jonathan |last2=Merrow |first2=Will |date=11 April 2024 |title=U.S. Aid to Israel in Four Charts |url=https://www.cfr.org/article/us-aid-israel-four-charts |access-date=2024-05-15 |website=Council on Foreign Relations |language=en}}{{Cite web |last1=Yousif |first1=Elias |last2=Stohl |first2=Rachel |date=13 October 2023 |title=In Shadow of War, a Snapshot of US Military Assistance to Israel • Stimson Center |url=https://www.stimson.org/2023/in-shadow-of-war-a-snapshot-of-u-s-military-assistance-to-israel/ |access-date=2024-05-15 |website=Stimson Center |language=en-US}}{{Cite web |last1=Ruebner |first1=Josh |last2=Booker |first2=Salih |last3=Hussain |first3=Zaha |date=12 May 2021 |title=Bringing Assistance to Israel in Line With Rights and U.S. Laws |url=https://carnegieendowment.org/research/2021/06/bringing-assistance-to-israel-in-line-with-rights-and-us-laws?lang=en |access-date=15 May 2024 |website=Carnegie Endowment for International Peace}}{{dead link|date=February 2025|bot=medic}}{{cbignore|bot=medic}} Since 2009, Israel has been provided with $3.4 billion for missile defense, including $1.3 billion for Iron Dome since 2011 and access to purchase other U.S. military equipment, including 50 Lockheed Martin F-35.{{Cite web |date=19 October 2023 |title=U.S. Security Cooperation with Israel Fact Sheet |url=https://www.state.gov/u-s-security-cooperation-with-israel/ |access-date=15 May 2024 |website=U.S. Department of State}}{{Cite journal |last=Shapir |first=Yiftah S. |date=January 2011 |title=The F-35 Deal: An Enlightened Purchase? |url=https://www.inss.org.il/wp-content/uploads/2022/12/fe-2473119151.pdf |journal=Strategic Assessment |volume=13 |issue=4 |pages=32}}{{Cite web |date=29 September 2008 |title=Israel – F-35 Joint Strike Fighter Aircraft |url=http://www.dsca.osd.mil/PressReleases/36-b/2008/Israel_08-83.pdf |website=Defense Security Cooperation Agency |access-date=May 15, 2024 |archive-date=February 16, 2013 |archive-url=https://web.archive.org/web/20130216051024/http://www.dsca.osd.mil/PressReleases/36-b/2008/Israel_08-83.pdf |url-status=dead }} Annual FMF grants represent approximately 16% of the 2021 Israeli defense budget. In 2021, the Security Cabinet of Israel allocated $9 billion in future FMF funds to finance the purchase of 12 Sikorsky CH-53K helicopters (with an option to procure six more) and additional F-35 aircraft.{{Cite web |date=4 January 2022 |title=Israel to purchase CH-53K King Stallion |url=https://www.navair.navy.mil/news/Israel-purchase-CH-53K-King-Stallion/Tue-01042022-1144 |access-date=15 May 2024 |website=Naval Air Systems Command}}{{Cite web |title=Israel wants its CH-53Ks as soon as possible |url=https://verticalmag.com/news/israel-wants-its-ch-53ks-as-soon-as-possible/ |access-date=2024-05-15 |website=Vertical Mag |language=en-US}} In August 2022, Boeing Defense, Space & Security and the Israeli government signed a contract for four Boeing KC-46A multirole tanker aircraft and "associated maintenance, logistics, and training" for $927 million. Israeli Defense Minister Benny Gantz thanked the Department of Defense for approving the deal, which included an "expedited implementation of U.S. FMF."{{Cite web |last=Frantzman |first=Seth |date=2022-09-01 |title=Israel, Boeing agree to $927M deal for four KC-46A tankers |url=https://www.defensenews.com/global/mideast-africa/2022/09/01/israel-boeing-prepare-to-sign-927m-deal-for-four-kc-46a-tankers/ |access-date=2024-05-15 |website=Defense News |language=en}}

Other countries in the Middle East and North Africa were among the other major recipients of FMF funds, including Jordan, Egypt, and Pakistan.{{Cite web |date=14 February 2007 |title=Congressional Budget Justifications - Foreign Operations Fiscal Year 2008 |url=https://2009-2017.state.gov/documents/organization/80701.pdf |website=U.S. Department of State}}{{Cite web |date=15 November 2018 |title=FY 2018 Department of State Agency Financial Report: Section I: Management's Discussion and Analysis |url=https://www.state.gov/reports/fy-2018-department-of-state-agency-financial-report/section-i-managements-discussion-and-analysis/ |access-date=15 May 2024 |website=U.S. Department of State}} The United States has provided aid to Jordan since the late 1960s. In 2022, the United States provided Jordan with $425 million in State Department Foreign Military Financing funds as part of its bilateral aid program.{{Cite web |date=2024-01-17 |editor-last=The International Trade Administration |editor-first=U.S. Department of Commerce |title=Defense and Security |url=https://www.trade.gov/country-commercial-guides/defense-and-security |access-date=2024-09-18 |website=www.trade.gov |language=en}} Egypt receives $1.3 billion in annual FMF, accounting for 80 percent of its military procurement budget. Since the 1979 Egypt–Israel peace treaty, over $40 billion in FMF funds have been used to acquire more than 1,100 M1A1 Abrams tanks, 224 F-16 fighter aircraft, 10 Boeing AH-64 Apache helicopters, thousands of Humvees, FIM-92 Stinger MANPADS, and AGM-114 Hellfire and Harpoon missiles.{{Cite web |last=Schenker |first=David |date=4 September 2013 |title=Inside the Complex World of U.S. Military Assistance to Egypt |url=https://www.washingtoninstitute.org/policy-analysis/inside-complex-world-us-military-assistance-egypt |access-date=2024-05-15 |website=The Washington Institute |language=en}}{{Cite web |last=Thompson |first=Nick |date=2015-11-11 |title=Seventy-five percent of U.S. foreign military financing goes to two countries {{!}} CNN Politics |url=https://www.cnn.com/2015/11/11/politics/us-foreign-aid-report/index.html |access-date=2024-05-15 |website=CNN |language=en}}{{Cite journal |last=Clarke |first=Duncan L. |date=1997 |title=US Security Assistance to Egypt and Israel: Politically Untouchable? |url=https://www.jstor.org/stable/4329053 |journal=Middle East Journal |volume=51 |issue=2 |pages=200–214 |jstor=4329053 |issn=0026-3141}} Pakistan has been one of the largest recipients of US aid in the past, with the US providing the country more than $30 billion in direct aid since 1948.{{Cite web |date=2011-07-16 |title=Sixty years of US aid to Pakistan: Get the data - Pakistan {{!}} ReliefWeb |url=https://reliefweb.int/report/pakistan/sixty-years-us-aid-pakistan-get-data |access-date=2024-09-18 |website=reliefweb.int |language=en}} In 2018, the Trump administration indefinitely froze all security aid to Pakistan due to its terror record.{{Cite web |date=2018-09-02 |title=Trump admin cancels $300M aid to Pakistan over terror record |url=https://www.nbcnews.com/news/world/trump-admin-cancels-300m-aid-pakistan-over-terror-record-n905786 |access-date=2024-09-18 |website=NBC News |language=en}}{{Cite web |last=Iqbal |first=Anwar |date=2023-04-28 |title=Pakistan urges US to restore military financing, sales |url=https://www.dawn.com/news/1749725 |access-date=2024-09-18 |website=DAWN.COM |language=en}}

= East Asia and Asia Pacific =

In September 2023, the Biden administration notified Congress that it was withholding $85 million designated for U.S. security assistance from Egypt due to its detention of political prisoners and human rights abuses and transferring $55 million to Taiwan and $30 million to Lebanon in FMF.{{Cite news |last=DeYoung |first=Karen |date=14 September 2023 |title=U.S. cuts military aid to Egypt, sends money instead to Taiwan |url=https://www.washingtonpost.com/national-security/2023/09/14/egypt-taiwan-military-aid/ |access-date=15 May 2024 |newspaper=The Washington Post}}{{Cite web |last=Harris |first=Bryant |date=2023-06-22 |title=Taiwan military aid granted by once-reluctant appropriators |url=https://www.defensenews.com/congress/budget/2023/06/22/taiwan-military-aid-granted-by-once-reluctant-appropriators/ |access-date=2024-05-15 |website=Defense News |language=en}}{{Cite news |last=Zengerle |first=Patricia |date=30 August 2023 |title=Biden approves military aid to Taiwan under program normally used for sovereign states |url=https://www.reuters.com/world/asia-pacific/biden-approves-military-aid-taiwan-under-program-normally-used-sovereign-states-2023-08-30/ |access-date=15 May 2024 |work=Reuters}} In 2022, Congress authorized but did not appropriate $2 billion in annual FMF to Taiwan.{{Cite web |last=Harris |first=Bryant |date=2022-12-21 |title=Congress forgoes $2 billion Taiwan security grants in favor of loans |url=https://www.defensenews.com/congress/budget/2022/12/21/congress-forgoes-2-billion-taiwan-security-grants-in-favor-of-loans/ |access-date=2024-05-15 |website=Defense News |language=en}}{{Cite web |last=Harris |first=Bryant |date=2022-08-25 |title=Taiwan is buying US weapons, but Washington isn't delivering them |url=https://www.defensenews.com/congress/2022/08/25/chinas-neighbors-are-buying-us-weapons-washington-isnt-delivering/ |access-date=2024-05-15 |website=Defense News |language=en}}{{Cite web |last1=Walker |first1=Dustin |last2=Eric |first2=Sayers |date=2023-06-14 |title=How Congress Can Help Taiwan Under the New Budget Deal |url=https://www.aei.org/foreign-and-defense-policy/how-congress-can-help-taiwan-under-the-new-budget-deal/ |access-date=2024-05-15 |website=American Enterprise Institute - AEI |language=en-US}} The 2023 NDAA instead required that security assistance to Taiwan be provided through loans payable in 12-years.{{Cite web |last=Campbell |first=Caitlin |date=7 May 2024 |title=Taiwan: Defense and Military Issues |url=https://crsreports.congress.gov/product/pdf/IF/IF12481 |access-date=15 May 2024 |website=Congressional Research Service}}

In October 2022, the Philippines was granted $100 million in FMF that according to U.S. ambassador to the Philippines MaryKay Carlson "could be used to 'offset' its decision to scrap a $227 million deal with Russia" and buy Boeing CH-47 Chinook helicopters from the United States instead of Mil Mi-17.{{Cite news |date=14 October 2022 |title=U.S. grants Philippines $100 million in foreign military financing |url=https://www.reuters.com/world/us-grants-philippines-100-million-foreign-military-financing-2022-10-14/ |access-date=15 May 2024 |work=Reuters}}{{Cite web |last1=Lum |first1=Thomas |last2=Dolven |first2=Ben |last3=Arabia |first3=Christina L. |title=The Philippines: Background and U.S. Relations |url=https://crsreports.congress.gov/product/pdf/R/R47055/1 |access-date=15 May 2024 |website=Congressional Research Service}}{{Cite news |date=15 August 2022 |title=Philippines in talks to buy U.S. helicopters after dropping Russia deal |url=https://www.reuters.com/business/aerospace-defense/philippines-talks-buy-us-helicopters-after-dropping-russia-deal-2022-08-15/ |access-date=16 May 2024 |work=Reuters}}

= Ukraine and Europe =

Since the 2022 Russian invasion of Ukraine, the U.S. government has provided $2.6 billion in FMF to European allies and partners.{{Cite web |last=Lewis |first=Jessica |date=5 December 2023 |title=The Future of Security Assistance in an Era of Strategic Competition - Remarks by Jessica Lewis, Assistant Secretary of Political-Military Affairs |url=https://www.state.gov/the-future-of-security-assistance-in-an-era-of-strategic-competition/ |access-date=15 May 2024 |website=U.S. Department of State}}{{Cite journal |last=Welt |first=Cory |date=15 February 2024 |title=U.S. Security Assistance to Ukraine |url=https://crsreports.congress.gov/product/pdf/IF/IF12040 |journal=Congressional Research Service}} The U.S. Congress has appropriated $4.65 billion across two aid packages for Ukraine and "countries impacted by the situation in Ukraine."{{Cite web |date=10 May 2024 |title=U.S. Security Cooperation with Ukraine |url=https://www.state.gov/u-s-security-cooperation-with-ukraine/ |access-date=15 May 2024 |website=U.S. Department of State}} FMF funds were used to refit and transfer four former United States Coast Guard Island-class patrol boats since 2018. In September 2022, Congress approved $288.6 million in FMF for Poland to "build the capacity to deter and defend against the increased threat from Russia."{{Cite web |last=Poland |first=U. S. Mission |date=2022-09-29 |title=United States Invests $288.6 Million in New Foreign Military Financing for Poland |url=https://pl.usembassy.gov/new_military_financing/ |access-date=2024-05-15 |website=U.S. Embassy & Consulate in Poland |language=en-US}}

In May 2024, US Secretary of State Antony Blinken announced a $2 billion aid package for Ukraine to establish a Ukraine Defense Enterprise Program.{{Cite web |last=Harris |first=Bryant |date=2024-05-16 |title=US announces $2 billion to help Ukraine make its own weapons |url=https://www.defensenews.com/global/europe/2024/05/16/us-announces-2-billion-to-help-ukraine-make-its-own-weapons/ |access-date=2024-08-20 |website=Defense News |language=en}} The package is intended to help Ukraine grow its indigenous defense industrial base and move away from Soviet-era weaponry.

= South America =

In April 2024, the U.S. embassy in Argentina announced that Argentina would receive $40 million in FMF to fund the purchase of 24 F-16 aircraft from the Royal Danish Air Force.{{Cite web |last= |first= |date=2024-04-18 |title=United States Announces $40 Million in Foreign Military Financing for Argentina |url=https://ar.usembassy.gov/united-states-announces-40-million-in-foreign-military-financing-for-argentina/ |access-date=2024-05-15 |website=U.S. Embassy in Argentina |language=en-US}}

References

External links

[https://www.defense.gov U.S. Department of Defense]
[http://www.state.gov U.S. Department of State]
[https://2009-2017.state.gov/t/pm/ppa/sat/c14560.htm U.S. Department of State Foreign Military Financing Account Summary]
[http://www.dsca.osd.mil Defense Security Cooperation Agency] {{Webarchive|url=https://web.archive.org/web/20080417030049/http://www.dsca.osd.mil/ |date=April 17, 2008 }}
[http://www.democracynow.org/2005/5/27/report_u_s_routinely_sends_arms "Report: U.S. Routinely Sends Arms to Undemocratic Nations"], on Democracy Now!, ion like ngas

Category:Arms industry

Category:Foreign Military Sales

Category:United States foreign policy

Category:United States military policies

FMF

Category:United States military aid